OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has revised the outlook to positive from stable and affirmed the financial strength rating of B+ (Good) and issuer credit rating of “bbb-” of SWBC Life Insurance Company (SWBC Life) (San Antonio, TX).
The revision of the outlook to positive and affirmation of the ratings for SWBC Life reflect the continued annual capital growth at the company as a result of its consistently profitable operating results and the lack of dividend requirements by the parent, Southwest Business Corporation (SWBC). SWBC’s support of SWBC Life also is reflected in the opportunities for growth in premiums through its business relationships with auto dealers and credit unions. The recent name change to SWBC Life further ties the company to SWBC.
Recent declines in SWBC Life’s net premium recognize the narrow credit insurance business profile and the declines in the lending market as a result of the economic downturn. A reversal in the decline in premium income is expected as lending activity increases.
The principal methodology used in determining these ratings is Best’s Credit Rating Methodology -- Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilized include: “Understanding BCAR for Life and Health Insurers”; “A.M. Best’s Liquidity Model for U.S. Life Insurers”; and “Risk Management and the Rating Process for Insurance Companies.” Methodologies can be found at www.ambest.com/ratings/methodology.
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